FRMO Corp. Announces Results for Fiscal 2017

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--FRMO Corp. (the “Company” or “FRMO”) (OTC Pink:FRMO) today reported its
financial results for the fiscal year 2017, which ended May 31, 2017.

Financial Highlights

FRMO’s 2017 book value as of May 31, 2017 was $114.2 million ($2.60 per
share on a fully diluted basis), including $10.9 million of
non-controlling interests. The figure from the prior fiscal year-end as
of May 31, 2016 was $102.0 million ($2.33 per share) including $3.7
million of non-controlling interests. Current assets, comprised
primarily of cash and equivalents and investments available for sale,
amounted to $71.3 million as of May 31, 2017, and $62.8 million as of
May 31, 2016. Total liabilities were $13.1 million as of May 31, 2017,
compared to $12.9 million as of May 31, 2016, the majority of each being
deferred taxes.

FRMO’s 2017 net income (loss) for the fiscal year ended May 31, 2017 was
$3,493,948 ($0.08 per share basic and diluted), compared to a loss of
$(780,011) ($(0.02) per share basic and diluted) for the 2016 fiscal
year. Income from operations for the 2017 fiscal year ended May 31, 2017
was $6,915,986, compared to $993,913 for the prior year. Comprehensive
income (loss) attributable to the Company for the same periods was
$4,335,956 up from a loss of $(7,020,898). The latter figure included
unrealized investment losses.

Further details are available in the Company’s Consolidated Financial
Statements for the fiscal year ended May 31, 2017. These statements have
been filed on the OTC Markets Group Disclosure and News Services (DNS),
which may be accessed at www.otcmarkets.com/stock/FRMO/filings.
These documents are also available on the FRMO web site at www.frmocorp.com.

Annual Meeting Information

The Chairman, President, and Board of Directors of FRMO Corp. cordially
invite shareholders to attend the Company’s Annual Meeting of
Shareholders at which the Chairman and President will review the Fiscal
2017 financial results and the outlook for the future. Board members
will be available to answer questions. The Annual Meeting will be held
on:

Friday, September 15, 2017 at 3PMThe Harvard Club of New York City35
West 44th StreetNew York, NY 10036

Admission to the FRMO Annual Meeting is limited to shareholders
who owned Common Stock as of the close of business on July 26, 2017 (the
record date) or their duly appointed proxies, and one guest. Proof of
ownership of FRMO stock and valid government-issued photo identification
must be presented in order to be admitted to the Annual Meeting.
Each guest must also present a valid government-issued photo
identification. If your shares are held in the name of a bank, broker,
or other holder of record, you must bring a brokerage statement or other
proof of ownership (or the equivalent proof of ownership as of the close
of business on the record date of the stockholder who granted you the
proxy). If your shares are held in certificate form, ownership will be
verified by consulting the list of Registered Shareholders as of the
record date. Registration will begin at 2:00 p.m. No cameras,
recording equipment, electronic devices, large bags, briefcases, or
packages will be permitted in the Annual Meeting. Dress code for the
Harvard Club is business casual (no jeans, sneakers or athletic wear
permitted).

Condensed Consolidated Balance Sheets

(in thousands)

May 31,

May 31,

2017

2016

Assets

Current Assets:

Cash and cash equivalents

$

51,125

$

49,092

Investments, available for sale, at fair value

18,933

11,727

Other

1,219

1,995

Total Current Assets

71,277

62,814

Investment in South LaSalle Partners, LP

5,743

4,990

Investment in Winland Electronics, Inc.

739

1,125

Investments in limited partnerships

24,833

21,355

Investment in OneChicago LLC

246

246

Investment in Digital Currency Group Inc.

76

76

Investment in CNSX Markets, Inc.

243

243

Investment in Miami International Holdings, Inc.

250

250

Investment in National Stock Exchange Holdings, Inc.

249

-

Investment in The Bermuda Stock Exchange

2,704

2,642

Investment in Horizon Kinetics LLC

10,773

10,880

Participation in Horizon Kinetics LLC revenue stream

10,200

10,200

Other assets

-

139

Total Assets

$

127,333

$

114,960

Liabilities and Stockholders' Equity

Current Liabilities:

Securities sold, not yet purchased

$

4,131

$

4,412

Other current liabilities

140

183

Total Current Liabilities

4,271

4,595

Deferred Tax Liability

8,842

8,319

Total Liabilities

13,113

12,914

Stockholders' Equity

114,220

102,046

Total Liabilities and Stockholders' Equity

$

127,333

$

114,960

Condensed Consolidated Statements of Income

(amounts in thousands, except share data)

Three Months Ended

Year Ended

May 31,

May 31,

May 31,

May 31,

2017

2016

2017

2016

(Unaudited)

Revenue:

Consultancy and advisory fees

$

542

$

506

$

1,994

$

2,536

Income (loss) from investment partnerships

and limited liability companies

76

1,121

(21

)

2,029

Unrealized gain (loss) from investments

subject to net asset valuation

(391

)

(1,664

)

4,161

(6,774

)

Income from unconsolidated subsidiary

2

4

62

3

Other

232

1,196

1,424

3,921

Total Revenue

461

1,163

7,620

1,715

Total Expenses

172

196

704

721

Income from Operations

289

967

6,916

994

Provision for Income Taxes

528

1,275

3,261

1,883

Net Income

(239

)

(308

)

3,655

(889

)

Less net income (loss) attributable to noncontrolling interests

77

(109

)

161

(109

)

Net Income (Loss) Attributable to FRMO Corporation

$

(316

)

$

(199

)

$

3,494

$

(780

)

Diluted Net Income per Common Share

$

(0.01

)

$

(0.00

)

$

0.08

$

(0.02

)

Weighted Average Common Shares Outstanding

Basic

43,953,155

43,953,155

43,953,155

43,820,150

Diluted

43,998,274

44,002,465

44,000,015

43,872,460

About FRMO Corp.

FRMO Corp. invests in and receives revenues based upon consulting and
advisory fee interests in the asset management sector.

FRMO had 43,953,155 shares of common stock outstanding as of May 31,
2017.

Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995 – With the exception of historical information, the
matters discussed in this press release are forward-looking statements
that involve a number of risks and uncertainties. Words like “believe,”
“expect” and “anticipate” mean that these are our best estimates as of
this writing, but that there can be no assurances that expected or
anticipated results or events will actually take place, so our actual
future results could differ significantly from those statements. Factors
that could cause or contribute to such differences include, but are not
limited to: our ability to maintain our competitive advantages, the
general economics of the financial industry, our ability to finance
growth, our ability to identify and close acquisitions on terms
favorable to the Company, and a sustainable market.